Liquidity analyses the company's ability to meet its most immediate obligations using its short-term assets. There are three levels of analysis: the current ratio, the quick (cash) ratio and the acid test. Each one gradually removes the less liquid assets to give a more realistic view of short-term solvency. An adequate level of liquidity ensures the company can meet payments, suppliers and operating expenses without resorting to emergency external financing.

• Current assets
• Current liabilities
• Inventories
• Cash and cash equivalents

• Current ratio: measures the overall coverage of short-term debts. Values between 1 and 2 usually indicate balance (depends on the sector).
• Quick ratio or cash ratio: excludes inventory to focus on truly liquid assets. A value close to 1 indicates good financial health.
• Acid test: compares only cash with immediate debts; it shows the company's extreme resilience to urgent payments.
• Below 1 in any of the ratios there may be a risk of cash strain.

• Working capital
• Cash conversion cycle
• Debt quality